One of the best kept secrets about negotiation:
- Experienced negotiators consistently get more information.
- Novice negotiators do not.
A great example of this is the reality TV show, Pawn Stars.
- Experts, like Rick and Richard, consistently get all goods appraised by experts (unless they are purchasing goods where they are experts themselves).
- Novices, like Corey and Chumlee, don’t consistently get goods appraised by experts. As a result, they get scammed and purchase counterfeit goods.
Why do negotiators decline an opportunity to get more information about a deal? Here’s why:
- Overconfidence bias. Novice negotiators think: I’m an expert. I’ve done this millions of times. I don’t need to get this appraised.
- Impatience. Who has time to get this appraised? I’m busy. Or I might lose this hot deal.
- Worried about sharing appraisal information with the customer. The last time I got it appraised, the customer used the information to make me pay MORE than what they were willing to sell it for BEFORE the appraisal.
Photo credit: Pawn Stars via Wikipedia